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Bank of America Corporation Message Board

  • bacbacker2 bacbacker2 Mar 22, 2009 9:16 AM Flag

    A FEW THINGS YOU SHOULD KNOW ABOUT BAC

    1) BAC's book value is $11. This was revealed in an interview with David Ellison, Chief Investment Officer, FBR Equity Funds. The interviewed appeared on Barron's. If you don't have access to view the full interview, here's a copy:
    http://www.gurufocus.com/forum/read.php?2,51633,51633

    2) Insider buying has gone up in the last couple of months. Ken Lewis has bought 400,000 shares. Here's a link:
    http://www.gurufocus.com/InsiderBuy.php?symbol=BAC

    3) Lewis said BAC could pay Gov't money back by end of this year. Just a few weeks before this (on Bloomberg), he had said that it would take 2 to 3 years. Ask yourself, why is he so confident all of a sudden? I think the reason is that BAC is having a VERY profitable 1st Quarter. Here's the link:
    http://www.charlotteobserver.com/business/story/603855.html

    With Geithner's new plan out next week, I expect BAC to be at $10 by end of week and around $20 after it's 1st Quarter.

    5 stars if you agree!

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • BAC owns almost half of BlackRock, Inc (From MER purchase). Blackrock's ticker symbol is BLK. BlackRock is very profitable, even last year. At current value, half of BLK is worth over $7 billion. If you take this into account, the MER deal was not as bad it seems.
      http://www2.blackrock.com/global/home/AboutUs/index.htm

    • "" Ask yourself, why is he so confident all of a sudden? I think the reason is that BAC is having a VERY profitable 1st Quarter. Here's the link:""

      Great post .

      All of the banks suddenly announced they will make money and the picture is rosy and here is why.

      Cost of money for these banks are at -0- which means they will make a killing going forward.

      The important point here is that on 60 minutes our beautiful Uncle Ben said that he would keep the situation the same and will not change it any time soon .

      He said one of the reason we dropped into depression the last time was because The then Fed raised the cost of money too early

      Couple of weeks ago I bought 100k shares of C at $1.29 and on Friday I sold them at $3.51 because C will have a dilution problem and I added to my BAC around $6.31

      Do not fight the Fed . They are much powerful than short sellers

    • I agreed with the guy above. BAC's aquisition of fire sale assets got was not included. BV is more like 15. And using forward earning multiple one analyst believe after tax of 4 buck eps.

      PE5=20
      PE10=40

      oh well, day trader will never learn.

    • Mr Ellison is wrong, he did not include the tangible book coming from the Merrill Lynch transaction, approximately $18 billion. On BAC's 12/31/08 balance sheet you have approx. $87 billion of tangible book plus $18 billion from ML = $105 billion/6.3 billion shares = $16.66.

    • One of best here, Five stars*****
      Sammy

    • 1) BAC's book value is $11. - WRONG. BAC value is 6.09 cause that is the price it's being traded. My realtor can tell me my house is woth a million dollars, if I can't sell it for that price I don't care what he says.

      2) Insider buying has gone up in the last couple of months. - RIGHT "Insiders" bought at January and Feb when the stock was $3, $4 and $5. I didn't see any recent transaction in the last few weeks nor anyone buying it at the price it is now. How does that help your point ?

      3) Lewis said BAC could pay Gov't money back by end of this year. - He will just about say anything - this is from that article: "He also said he'd like for the bank to make $30 billion in a year before he exits." - and now let's look at facts: back in 4th quarter 2007 and before this whole mess happend "For the fourth quarter, net income was $5.26 billion, or $1.16 per share, as compared to $3.57 billion, or 88 cents a share, in the year-ago period" http://www.investorguide.com/stock-archives.cgi?date=012307

      So when the stock was trading at the 40's the bank was making $5.26 billion which would be $20.04 billion a year. Now with unemployment, real estate going down, the government printing money like it was monopoly, you are telling me that you will make $7.5 billion a quarter?? I don't know but something tells me not to trust statements like that.

      I am not shorting BAC, I am long losing money, but I also am realistic and every time someone speaks and makes blanket announcements like "We are going to pay back 65 billion this year" I do a little bit of research and laught at those statements, maybe you are impressed by them .. good for you.

      Hope to hear some good news Monday regarding toxic assests or M2M rule, or anything to give this some life.

      • 5 Replies to yk121976
      • "1) BAC's book value is $11. - WRONG. BAC value is 6.09 cause that is the price it's being traded.".....

        Book value is 11 not 6.09. The important point is potential appretation of nearly 100% from this level, not what it is trading at today.

        " So when the stock was trading at the 40's the bank was making $5.26 billion which would be $20.04 billion a year. Now with unemployment, real estate going down, the government printing money like it was monopoly, you are telling me that you will make $7.5 billion a quarter?? I don't know but something tells me not to trust statements like that."....

        Your not considering the $10 bil+ a year that MER and CW are good for. The billion dollar question is, are we at the bottom for real-estate, unemployment and gov cash injection; or do we still have a long way to go. I think we are closer to the battom than media wants you to believe. We all have to wait and see and there is lies the risk/reward.

        "I am not shorting BAC, I am long losing money, but I also am realistic and every time someone speaks and makes blanket announcements like "We are going to pay back 65 billion this year" I do a little bit of research and laught at those statements, maybe you are impressed by them .. good for you."....
        The pay back for BAC is $45B not $65B. I would say CEO is closer to right than wrong, when he says he will pay back in a year or less. Lieing or exagerating that type of info in todays environment is suicide.

        I continue to trade BAC and simultaneously building a long-term position.

      • From your previous post, it is obvious you are not long. You were the original post of "in at 3 out at 3.15". This tells me either you have a short position right now or waiting of a drop so you can buy again becuase you jumped at 3.15

      • Book value and stock price are not the same things.

      • You forget that they cut all the div and yield, this will save them a lot of money.

      • WRONG. BAC value is 6.09 cause that is the price it's being traded. My realtor can tell me my house is woth a million dollars, if I can't sell it for that price I don't care what he says.
        .
        Look up the definition of book value. It is not the same as market value. Yes, BAC is trading at market value which is what people will pay for it today. That may change tomorrow.
        http://www.investorwords.com/549/book_value.html

    • I agree. Tomorrow shorts will see this as a part of reality.

    • a normal informative opinionated post...how refreshing...thank you.
      btw i agree.

    • number 3) is a very bold statement from the CEO. He must feel very confident in deed or he and company will get sued for lying to investors. I believe him, he wouldn't lie to the government and angry investors during this time, or he will look even worse than Maddoff on the street. Earning week is coming, I think BAC will go up from now until April 20th Conference Call. Earning will be a shock to Shorts. We may see 15/sh, but due to too many naked shorts in BAC, the short covering wave may even push the price to 20/sh.

      • 1 Reply to smokinggun2003
      • I think a high of $17.98 will be reached sometime within the next 30 days. But then it will be rinse and repeat heading down again.

        The cycle unfortunately will continue for a little while, but long term this is absolutely a buy and hold.

        Just stay away from Margin buys to ensure you are protected from being pushed out due to margin requirements.

    • I hope you're right and thanks for the LINKS which give your estimation some credibility

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